What Is Managed Metadata?

Available only through Microsoft SharePoint 2010 Server (not SPF), managed metadata is a mechanism that enables administrators to create hierarchical term sets that can then be used in document libraries and lists as columns.

A term set is similar to a list that contains items, except that these items can contain more items under them in a hierarchy. For example, if you have a term set called Products, you could have a term for each product that you have in the organization.

By using managed metadata, you can create the list as a hierarchical list, grouping the products into categories (creating terms for the categories and then terms for the products under them) or into product groups;